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Investor Behavior

We believe that an investor's behavior can seriously impact their market returns. This category page is dedicated to informing our readers of certain behaviors that are known to damage investor's returns over time. We also discuss strategies to avoiding these damaging behaviors.

When it comes to investing, risk tolerance is the amount of risk you’re willing to take as an investor. We all have to take some degree of risk to enjoy any type of return. Different investors are comfortable with different levels of risk taking. Some advisors and investors like to categorize risk as being aggressive,… [Read More] Risk Tolerance Shouldn’t Change with the Market

So you’ve found an investment advisor you’re potentially interested in working with, sounds great. What are the important questions you need to ask him or her before getting started? As an advisor, I know a few questions that investors absolutely need to ask. Unfortunately, these aren’t always the questions that get asked. What Should I… [Read More] Important Questions to Ask an Advisor

What’s your worst enemy when it comes to investing? Well, for starters the answer is a who, not a what. It’s not Janet Yellen, President Obama, or Mario Draghi. You are your own worst enemy. That’s right! Josh Brown of Ritholtz Wealth Management recently blogged over on his site (The Reformed Broker) about this topic… [Read More] An Investor’s Worst Enemy

https://media.blubrry.com/invest/p/content.blubrry.com/invest/Being_Realistic_About_Time_Horizons_February_2015_Podcast.mp3Subscribe: Android | RSSOne of the most frequently quoted time periods in finance is the ambiguous “long term”. We’re all supposed to be long-term investors, and studies show that “over the long term” results will be desirable. This sounds nice, but what is this mythical “long term”? Is there a defined period of time that… [Read More] Being Realistic About Time Horizons

https://media.blubrry.com/invest/p/content.blubrry.com/invest/Even_in_Good_Years_the_Market_Pulls_Back_January_2015_Podcast.mp3Subscribe: Android | RSSKeeping things in perspective is important. Investors fall victim to cognitive biases sometimes, but we can do our best to avoid that type of behavior. With the strong markets seen in 2012, 2013, and 2014, investors are primed for recency bias to cloud their judgement. It’s imperative to remember that even in… [Read More] Even in Good Years the Market Pulls Back